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5/24/14

European democracy is in big, big trouble - by Paul Krugman

In his latest column for the New York Times, celebrated pundit and economist Paul Krugman writes that the democratic, egalitarian project of a modern, integrated Europe is under threat from ideological elites on the one hand and demagogic nationalists on the other.

“The truth is that the European project — peace guaranteed by democracy and prosperity — is in deep trouble,” Krugman writes, “the Continent still has peace, but it’s falling short on prosperity and, in a subtler way, democracy. And, if Europe stumbles, it will be a very bad thing not just for Europe itself but for the world as a whole.”

Economist that he is, Krugman places the blame primarily at the feet of EU elites who refuse to give up on austerity, regardless of the fact that it’s hurting Europe’s economies and fueling nationalist, reactionary sentiment.

“The inherent problems of the euro have been aggravated by bad policy,” Krugman explains. “European leaders insisted and continue to insist, in the teeth of the evidence, that the crisis is all about fiscal irresponsibility, and have imposed savage austerity that makes a terrible situation worse.”

The resulting near-deflation, Krugman says, and the refusal of EU elites to reconsider their approach, has created “a growing distance between governments and the governed.” This distance, Krugman warns, “has empowered groups like the National Front in France, whose top candidate for the European Parliament denounces a ‘technocratic elite serving the American and European financial oligarchy.’”

If EU leaders aren’t careful, Krugman says, they risk crashing the whole European project on the shoals of austerity:

Read more: Paul Krugman: European democracy is in big, big trouble - Salon.com

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